iifl-logo-icon 1

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

  • Open Demat with exclusive Advice & Services
  • Get a dedicated Relationship Manager to help you grow your wealth
  • Exclusive advisory on 20+ trading & wealth-based investment options
  • One tap Investments, Automated trading & much more
  • Minimum 1 lakh margin required
sidebar image

Dollar weakens as US economy shows signs of slowdown in April

24 Apr 2024 , 09:54 AM

Due to a combination of unexpectedly strong European activity figures and slowing U.S. business growth, the dollar suffered significant losses versus the euro and sterling on Wednesday.

Even so, the yen continued to hover at a 34-year low in relation to the US dollar, despite increased intervention warnings from Japanese authorities.

The dollar index, which compares the value of the dollar to six major currencies, including the euro, sterling, and yen, remained unchanged at 105.64 in early Asian trading following an overnight decline of 0.4% that saw it hit its lowest point since April 12 at 105.23.

After a 0.45% increase on Tuesday, the euro was little changed at $1.069975 as data indicated that the euro zone's business activity rose at its quickest rate in a year, due to a recovery in services.

On the other hand, lower demand caused U.S. business activity to decline in April to a four-month low, and inflation rates somewhat decreased, indicating that the Federal Reserve may be on the verge of relief.

The release of the PCE deflator, the Fed's favoured measure of consumer inflation, on Friday, will be a significant test of that. Based on the CME's FedWatch tool, markets are pricing in a 73% possibility of a first-rate cut by September.

In other news, the Australian dollar, which fell to a five-month low on Friday, has recovered more than 1% over the last two days to trade at its highest level since April 15 at $0.64875 ahead of consumer inflation data.

Last week, the dollar index hit a 5-1/2-month high of 106.51 as ongoing inflation drove Fed officials to signal no rush to ease policy.

The dollar managed to rise somewhat on Tuesday despite its overall difficulties, reaching a new 34-year high against the yen at 154.88. Between that high and a low of 154.50 this week, the pair has fluctuated in an incredibly narrow range, making traders cautious that a push over 155 could increase the likelihood of dollar-selling intervention by Japanese officials.

Shunichi Suzuki, the finance minister of Japan, warned of the possibility of intervention on Tuesday in the sharpest warning to date. He said that Tokyo was prepared to act against excessive currency moves after meeting with counterparts in the United States and South Korea last week.

At the end of a two-day meeting, the Bank of Japan is generally expected to maintain current policy settings and bond purchase amounts.

For feedback and suggestions, write to us at editorial@iifl.com

Related Tags

  • Dollar
  • Euro
  • Yen
sidebar mobile


Read More
Knowledge Centerplus

Logo IIFL Customer Care Number
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

Knowledge Centerplus

Follow us on


2024, IIFL Securities Ltd. All Rights Reserved

  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.